SGI Bids To Limit Equity Trades, Info Sharing

Law360, New York (May 10, 2006, 12:00 AM EDT) -- Two days after filing for Chapter 11 protection, high-performance computer maker Silicon Graphics Inc. has asked a bankruptcy court to limit large trades of its equity, saying it wants to protect about $1 billion in net operating loss carryforwards for tax purposes.

The company said the future write-offs were "valuable assets" of its estate.

Companies are generally allowed to protect net operating losses to offset future income unless a change of ownership occurs. SGI said the losses could garner substantial future tax savings and would benefit...